1 Spreadsheet Exercise: Problem 2.3 2 A Brazilian company called Netshoes completed its IPO on April 12, 2017, and listed on the NYSE. Netshoes sold 8,250,000 shares of stock to primary market investors at an IPO offer price of $18. Secondary market investors, however, were paying only $16.10 per share for Netshoes's stock. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. 3 4 5 6 7 8 To Do Create a spreadsheet to determine the following: a. Calculate the gross proceeds for Netshoes's IPO. b. Calculate the underpricing for Netshoes's IPO. c. What does the IPO underpricing for Netshoes demonstrate? d. How much money was left on the table in Netshoes's IPO? 9 10 11 12 Solution a. Calculate the gross proceeds for Netshoes's IPO. Number of shares Price per share Gross proceeds 8,250,000 $18.00 17 18 19 19 20 b. Calculate the underpricing for Netshoes's IPO. 21 22 $16.10 Closing price per share IPO underpricing per share 23 24 25 c. What does the IPO underpricing for Netshoes demonstrate? 26 27 The shares were and subscribers paid too 28 29 d. How much money was left on the table in Netshoes's IPO? 30 31 was left on the table in Netshoes's IPO. 32 33 34 Points 1 1 37 35 Requirements 36 1 In cell D18, by using cell references, calculate the gross proceeds for Netshoes's IPO. 2 In cell D23, by using cell references, calculate the underpricing for Netshoes's IPO. Note: The output of the expression or function you typed in this cell is expected as a positive number. 3 In cells D27 and G27, determine what does the IPO underpricing for Netshoes demonstrate. 4 In cell C31, determine the amount of money that was left on the table in Netshoes's IPO. 38 39 2 1 40